The Home Depot, Inc. (HD): Jim Cramer Discusses Stock In The Context Of Interest Rates

We recently published 13 Stocks Jim Cramer Discussed During His Historic Morning Appearance. The Home Depot, Inc. (NYSE:HD) is one of the stocks Jim Cramer recently discussed.

The Home Depot, Inc. (NYSE:HD) is a frequent topic of discussion on Cramer’s morning show. Year-to-date, the stock has gained 6.4% to lag the S&P 500’s 11% in gains. The Home Depot, Inc. (NYSE:HD)’s latest earnings report, which was released in August, saw the firm’s CEO comment about a “deferral mindset” in consumers who are struggling in a high-interest-rate environment. Cramer’s previous comments about the firm have discussed the impact of interest rates on the stock in detail. He has opined that if the Fed cuts rates this time, then the long-end rates might go lower and stimulate the stocks. This time, he discussed the rates and their effects on The Home Depot, Inc. (NYSE:HD) and other stocks and added an interesting caveat:

“[On how the stocks were leading a few days ago and were the laggards now] Look I’m a huge believer that these stocks go up when the Fed cuts and you gotta be there. And don’t think that you’re gonna get a chance once they cut because, man they’re gonna fly. That’s been what happened. If the long rates go down [laughs]. If the long rates go up, then you know what, I’d be in Office Depot. They’re still around.”

As for his previous comments about The Home Depot, Inc. (NYSE:HD) and the long-end interest rates, here they are:

“Having traded bonds for a living for a while, what you have to understand is this that, these are very small increments, and you don’t, when you’re focused on the ten year, don’t suddenly focus on the thirty year. That confuses people at home. Rates are going lower. Okay. Now this time, one year ago, one year ago, they cut, and then the long end went up. This time, I think they cut, and the long end goes down [and that would include mortgage rates]. And that’s why the housing stocks have had, just a [inaudible] yesterday, that indicated that you’re going to see gigantic explosion of housing starts. . . yesterday Home Depot was the star of the show. And that made sense to me. Because they told you this time it’s for real. And I think that this time Home Depot which has been nothing for a long time. . .go higher. Yeah see there it is [points to the graph], that’s what you buy. That’s what you buy right here right now because we got the tariffs already in. . .”

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Disclosure: None. This article is originally published at Insider Monkey.